The Rundown - Huawei Takes a Swing at Nvidia with New AI Chip, DoorDash Offers $3.6B to Buy Deliveroo

Episode Date: April 28, 2025

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Public.com presents the rundown. Your daily market update in five minutes. My name is Zaid Admani, and today is Monday, April 28th. In today's episode, we get you ready for an action-packed week. Over 300 companies are reporting earnings, including many of the tech giants. We'll tell you what to look forward to. We also discuss a major development in China that might threaten NVIDIA's dominance in AI. We're also starting to feel the impact of Trump's tariffs,

Sheehan and Timu are raising prices. We'll tell you more about that. Then stick around to the end of the show to find out who just overtook Japan to be the fourth largest economy in the world. We get a great show for you today. Let's go. We are coming off a solid week for the stock market. Last week, the S&P 500 added 4.7%, and the NASDAQ jumped 6.7%. So a huge week for the portfolios.

I sensed a bit of a vibe shift last week. Investors seem to be more optimistic that trade tensions will simmer down. President Trump even made comments last week that he thinks that tariffs on Chinese imports are too high and that he's talking to China about a deal. There was even rumors that Trump was thinking about cutting tariffs on Chinese imports by half. Now, nothing official was announced yet. In fact, China keeps denying that any conversations are happening between the two countries, but the market seems to be ignoring that for now. Everyone seems to be hopeful that some Something will get worked out. Oh, and President Trump also said that he has no plans to fire Jerome Powell, which has everyone

breathing a sigh of relief about the stability of the U.S. markets. I'll be honest, I was pretty surprised about the market rally last week, especially since there hasn't been any actual trade deals announced. But I'm not going to complain, though. It's nice to see the portfolio go up, but we'll have to see if this rally was just a head fake or a start of an actual turnaround. Now, what could help the rally this week is if we continue to see solid earnings from companies. We're going to get a ton of info this week because about a third of the S&P 500 companies

are reporting earnings this week, including some of the heavy hitters like Spotify, Apple, meta, Amazon, and Microsoft. So we're in for a busy week. If these tech giants outperform on earnings like Google did last week, it might make investors forget about tariffs for a bit and send the markets higher. I'm personally looking forward to Amazon's earnings the most because we might get some insight on how tariffs are impacting prices and consumer. we're spending. We're actually going to talk more about that in a bit. But yeah, you guys definitely

don't want to miss an episode this week. We're going to have a lot to talk about. And what's crazy is if we get a decent rally this week, April could end up being a green month for the stock market. Imagine telling that to someone two weeks ago when we were on the verge of a bear market. Pretty crazy turnaround over the last couple weeks. Let's run through some headlines. The Chinese chipmaker Huawei is taking a big swing at NVIDIA. According to a report from the Wall Street Journal over the weekend, Huawei is developing a new AI chip called the Ascend 910D with the first batch of samples expected to be delivered by late May.

This new chip builds on earlier models, the 910B and the 910C. And Huawei expects to ship about 800,000 of these chips this year to customers like BightDance and to China's state-run telecom giants. So they're ready to take some market share from a market share from a new year. NVIDIA. Chinese tech companies are leaning hard on Huawei after U.S. sanctions cut off access to NVIDIA's top chips. And while Chinese firms have made serious progress with what they have, no one has caught up to NVIDIA just yet. But it looks like Huawei might be pretty close. And this is one of the downsides that critics, including NVIDIA, have pointed to when it

comes to U.S. sanctions on China. The U.S. government previously allowed NVIDIA to sell a less powerful version of their AI chips to China, but recently the Trump administration has shut that door too. And that's making it even more urgent for China to create a homegrown AI chip and not rely on Nvidia. If Huawei does end up producing an AI chip comparable to Nvidia's, they might not just dominate China's market, but they could start taking market share from Nvidia in other countries as well. That's the big concern that Nvidia has from these export restrictions. So definitely something to keep an eye on. Invitya's CEO, Jensen Huang, is worried about this himself. He flew to Beijing a couple weeks ago to talk to Chinese leaders and Chinese tech executives about maintaining relations,

but with these strict export restrictions, it's going to be hard for Nvidia to do that and compete in the Chinese market. I got to say, man, Huawei is becoming a tech powerhouse. Despite being blacklisted by the U.S. nearly six years ago, you know, you can't buy any Huawei phones in the U.S. or any sort of Huawei devices. They're continuing to innovate and dominate the Chinese market in smartphones, telephones, telecoms and other industries, and soon that might include AI chips. Now, shifting gears from one Chinese company to another, let's talk about Xi'in. The fast fashion giant is raising prices on hundreds of items in the U.S. because of tariffs. This is according to analysis from Bloomberg.

The price hikes went into effect on Friday, with the average price for the top 100 products in the beauty and health category increasing by 51% compared to Thursday, and for toys and home and kitchen products, the average jump was more than 30%. In fact, there were some products that went up by 200 to 300%. The example that Bloomberg gave was kitchen towels that used to cause $1.28 on April 24th, and they now cost $6. Now, we really shouldn't be surprised by this. These Chinese e-commerce platforms like Shian and Timo became super popular in the U.S. because of their ultra-low prices, like the $1 kitchen towels. And up until recently, these items didn't face any tariffs because of the de minimis. exception for small packages coming to the U.S.

That allowed goods valued under $800 to enter the U.S. without having to pay tariffs or custom duties. But the Trump administration is removing the de minimis exception starting May 2nd, so by the end of this week, which means that items from Sheehan and Timu will be hit with a 120% tariff when they're imported into the U.S. So I expect prices for more items on these platforms to go up. And by the way, it's not just Sheehan fueling the heat. A lot of Amazon sellers that relate to.

on Chinese imports are hiking prices too, according to CBS News. The example they give was a furniture seller that said that tariffs could force them to raise prices by 25 to 50 percent depending on the item. And that's one of the worries that some economists have about tariffs on China, that it will lead to prices going up and ultimately higher inflation. Now, it could just be a one-time price increase, so we'll have to see what the data says. But if you were planning to do some shopping on Timo and Xi'in, you might want to place the order pretty soon because there's a chance the prices you pay will be higher over the next few days.

Let's talk about some stocks making moves today. Deliveroo shares are surging this morning, jumping to a three-year high after they received a $3.6 billion buyout offer from DoorDash. Deliveru operates across many markets, including the UK, France, Italy, Singapore, and Qatar, and they just announced their first ever annual profit back in March. But despite that, the London, London-based food company, which went public back in 2021, has seen their stock price plunge. Investors seem to be skeptical the company can be profitable long-term in a post-pandemic environment. DoorDash has proven that they can make food delivery into a viable business. So maybe this takeover makes sense. Investors seem to be pretty excited about that and shares of

delivery are up 18% this morning on the London Stock Exchange, which is the largest jump since 2021. Now, on the flip side, sticking with a food delivery theme, Domino's Pizza, their stock is down this morning after they reported a surprise drop in U.S. same store sales. U.S. same store sales fell by 0.5% in Q1, which was a surprise because analysts were expecting a 0.5% gain. And despite the slowdown in the U.S., international sales grew better than expected at 3.7%. Now, I would think that macroeconomic uncertainty and a potential economic slowdown would be good for Domino's business, considering that pizza is a pretty affordable option when it comes to but I don't know, maybe people just can't stomach delivery fees anymore.

Domino stock is down around 2% this morning in reaction to these earnings. Let's wrap the show with a fun fact. The largest economy in the world is the U.S. But if you were to measure each state's economy, then California alone would be the fourth largest economy in the world. California's GDP totaled $4.1 trillion in 2024, which beat out Japan's $4 trillion. In fact, the only countries to have a large country,

larger economy than California is China and Germany. But what's interesting is that California's 6% annual growth is outpacing all of them. California has a population about 40 million people, and the state accounts for nearly 14% of the U.S.'s total GDP last year. Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. We've got a big week coming up, so you definitely don't want to miss an episode this week. And if you guys have like 12 extra seconds today, consider giving us a five-star rating on Apple

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you guys are looking forward to the most. Thank you guys again for listening. Shout out to Mike and Connor for all the help behind the scenes and we'll see you guys back here tomorrow.